Why Is Life Insurance So Important?

family-walking-on-path

With the recent real estate boom in Canada, cottages and other vacation properties have increased significantly in value. These properties are now worth substantially more than their purchase price. At death, 50% of this increase value is subject to taxation.

Are you aware of the impact this capital gains tax liability could have on your estate? A lack of proper planning could mean that you family cottage won’t stay in your family. Your estate might need to sell it to pay the tax liability. It’s a ticking time bomb that most people are unaware of and don’t plan for.

What are your options?

A number of different options will provide the cash required to pay this tax liability at death. It’s important to make the best choice for your situation.

  1. You and your family start saving today
  2. Your heirs can borrow the required funds from the bank
  3. Your estate can sell the asset, or
  4. You can purchase life insurance to cover the growing tax liability.

Best Solution

Life insurance is often the most cost effective planning tool to cover the tax liability at death. Life insurance provides cash to pay the tax exactly when it’s needed, helps ensure your heirs receive what you intended them to receive and puts your mind at rest because you know you’ve taken care of this important issue.

A little planning can ensure that your dream of passing the family cottage to your heirs will be realized.

Martin Grimba – Regional Vice President Estate Planning Assante Estate & Insurance Services Inc.

For more information please contact The McClelland Financial Group at 905. 771. 5200

Related articles

Newsletter Images Articles

How Lower Interest Rates Affect Canadians

Canadians have been anticipating an interest rate decrease for the past six months. Why is the market so excited about an interest rate decrease? An ...
Read More →
Podcast Cover Podcasts

Episode 264: Top 10 Investment Mistakes

Welcome to another episode of Think Smart with TMFG, your go-to podcast for what’s newsworthy and relevant to everyday Canadians. Join Senior Financial Advisor Rob ...
Read More →
Newsletter Images Articles

Top 5 Tax-saving Tactics Every Gen-Xer Should Know

In this week’s article, we’re exploring five essential tax-saving strategies explicitly tailored for Gen Xers. Born between 1965 and 1980, Gen Xers are in their ...
Read More →

Financial Planning Advice from Canada's Top Financial Advisors

Sign Up To Receive Email Updates On The Financial Industry And Complimentary Workshops.

By providing your e-mail address you provide The McClelland Financial Group of Assante Capital Management Ltd. with your express consent to send you electronic communications. If you choose to discontinue receiving e-mails, you may withdraw consent by contacting tmfg@assante.com.

FREE RESOURCE

Get actionable financial insights from the Top financial planners in Toronto.

Toronto's Top Financial Advisors
Copyright Assante Wealth Management. © 2024

Disclaimer | Assante advisory services are offered through Assante Capital Management Ltd. Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. The services described may not be applicable or available with respect to all clients. Services and products may be provided by an Assante advisor or through affiliated or non-affiliated third parties. Some services and products may not be available through all Assante advisors. Services may change without notice. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

We have a team of advisors each specializing in varying portfolio sizes. Please let us know the approx. amount of your investable assets to help us to direct you to the advisor that is best suited to you.